Notable Quotes
"With the LOI signed, we urge investors to bolster positions in FCU." (12/22/15) Fission Uranium Corp. - David Sadowski, Raymond James More >
"FCU is taking the right steps regardless of whether PLS is ultimately acquired or developed into a mine." (12/22/15) Fission Uranium Corp. - Heiko Ihle, Rodman & Renshaw More >
"I am quite excited about POE in 2016." (12/16/15) Pan Orient Energy Corp. - Chen Lin, What Is Chen Buying? What Is Chen Selling? More >
"BKX's Oklahoma asset has significant value." (12/16/15) BNK Petroleum Inc. - Michael Charlton, iA Securities More >
"EFR is one of the few companies in a position to write long-term sales contracts and deliver into them at several times its current production rate." (12/17/15) Energy Fuels Inc. - The Gold Report Interview with Eric Coffin More >
Why Some Natural Gas Is Worth $7.28
Energy Strategist
(04/28/2010)
"The title of this week's issue isn't a prediction—it's reality. Before you decide I'm crazy and close this e-mail, understand that I'm well aware that near-month natural gas futures traded on the New York Mercantile Exchange (NYMEX) are priced just over $4 per million British thermal units. And I'm aware of the prevailing view that natural prices will likely remain near record lows because of elevated levels of stored gas. Those pundits are at least partially correct: U.S. natural gas storage levels are above the five-year average and, thanks to mild spring temperatures, have increased at a faster-than-normal pace in recent weeks. I'm also not the first to tell you that the discovery and rapid development of several major unconventional natural gas shale fields over the past few years has revolutionized the industry and transformed the U.S. into the world's biggest natural gas producer. This is an astounding shift. Less than a decade ago, most energy industry analysts would have told you that U.S. gas imports in the form of liquefied natural gas (LNG) were set to soar as domestic production began an inevitable decline. Now U.S. LNG terminals sit idle, and there's talk of passing laws to encourage the use of natural gas in new markets such as transportation. North America's strong gas production outlook, high storage levels and weak NYMEX gas prices seem to be completely at odds with the surge in drilling activity that's occurred since last summer. Liquid Assets . . .There are a few different ways to play the boom in drilling activity directed at natural gas liquids (NGLs) and crude oil. One is, of course, to focus on companies that own acreage in these wet natural gas and shale oil plays around the US and/or Canada. Another even more levered play: Services and drilling firms with the advanced rigs and technical know-how to drill these complex fields. Shale fields often require drilling deep wells with lengthy horizontal legs. Such wells also require multiple fracturing stages to render them economically producible. In other words, producers require powerful equipment; every horizontal well drilled in the U.S. requires the purchase of far more services and equipment than a vertical well in a conventional field. But income-oriented investors should also consider buying master limited partnerships (MLP) with exposure to natural gas gathering, processing and fractionation. Producers will need access to processing plants to separate valuable NGLs from the gas, fractionation plants to separate NGLs into their constituent components and terminals and storage facilities."
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More Experts
"FCU's deal with CGN helps to financially and technically derisk PLS." (12/21/15) Fission Uranium Corp. - David Talbot, More >
"NXE is our top pick across all commodities." (12/22/15) NexGen Energy Ltd. - The Energy Report Interview with Rob Chang More >
"FCU will continue to explore and add pounds to what is already a world-class project." (12/22/15) Fission Uranium Corp. - The Energy Report Interview with Rob Chang More >
"EFR is well positioned to benefit from higher uranium prices." (12/22/15) Energy Fuels Inc. - The Energy Report Interview with Rob Chang More >
"FCU intends to sell $82M or 19.9% of the company to CGN Mining." (12/22/15) Fission Uranium Corp. - Jeb Handwerger, Gold Stock Trades More >